ELKHART, Kan. (KAKE) - Former Heartland Tri-State Bank CEO Shan Hanes has been charged with embezzling tens of millions of dollars from the now failed bank.

Court documents show Hanes made $47 million in wire transfers from the Elkhart based-bank in an effort to purchase cryptocurrency. Prosecutors said the loss of the $47 million caused the bank to fail in July 2023. Prosecutors also allege Hanes purchased cryptocurrency with funds embezzled from a church and local investment club.

If found guilty, Hanes could spend up to 30 years in prison and a fine up to $1 million.

When the bank failed, the Federal Deposit Insurance Corporation took control. It reopened as Dream First Bank. 

Heartland Tri-State Bank had approximately $139 million in total assets and $130 million in total deposits, the FDIC said. Dream First Bank agreed to buy “essentially all” of Heartland Tri-State’s failed assets.